The dispute arising out of removal of Cyrus Mistry as Chairman of Tata Sons has got more muddied with a hostile stand taken by Mistry. This has led to measures being taken by Tata Sons for his removal which are quite unprecedented, in the Indian Corporate history and of course, the history of Tata Group. … Continue reading Tata Sons & Group Companies – Understanding the Board Structure..
The demonetisation and Mistry’s exit from Tata have taken the sheen out of all other recent news, one of which is the slapping of fine of nearly Rs 10,000 crore by the government on RIL and its partners. The fine relates to migration of gas from ONGC fields to RIL fields in K-G basin leading to … Continue reading Understanding RIL-ONGC Gas Migration Dispute.
Amidst the noise around Cyrus Mistry’s exit from Tata Sons is the issue of potential impairment charges, most notably in Tata Steel Europe. No doubt, Tata Steel paid a heavy price for the acquisition of Corus but how serious are his allegations and how heavy is the burden of existing European assets. A brief attempt to understand … Continue reading Impairment Charges – Case of Tata Steel Europe..
While the hype surrounding the replacement of Cyrus Mistry as Tata Group chairman seems to have died down, the core issue continues to stare the Group, indeed, the whole of corporate India. How such a meticulously planned search for succession, a year-long grooming and the subsequent change of guard turned out to be such a … Continue reading Mistry's exit from Tata – A disastrous succession…
Reliance Communication is in the middle of a business portfolio realignment with agreement to sell majority stake in its towers business. This, along with its earlier decision to form a JV with Aircel, are geared towards reducing its debt burden. However, the company is giving up major controlling stake in the businesses and may make the … Continue reading Reliance ADAG – In the Middle of Business Realignment..
The buyout of Essar Oil (98% stake) by Rosneft and its partners at a total value of nearly $ 13 bn is a landmark deal which opens up a whole new market for the buyer. The Essar refinery and its retails outlets would become the first to be run by foreign operators and can change the … Continue reading Rosneft-Essar Deal – A New Beginning For Indian Refining Industry..
The conversion of ABG Shipyard’s preference shares into equity by ICICI Bank yesterday sets the stage for takeover of company by the lenders. The fate of the company is similar to that of another private sector ship building company Bharti shipyard and of numerous other ship building companies going bust globally, especially China. It would … Continue reading ABG Shipyard – Boom to Doom..
Tata Group Chairman, Mr Cyrus Mistry’s statement last week broaching the issue of exiting businesses brings the 150 year old behemoth at a crossroad. The statement seems to mark a shift in group’s strategy from expansion/acquisitions to consolidation as driver of growth. None of the chairman had openly talked about the need to trim down the portfolio so … Continue reading Tata Group – Reading Cyrus Mistry's mind..!
The merger of Reliance Communications with Aircel adds to the list of industries witnessing significant consolidation. Other recent ones are Cement with buy-out of Jaiprakash Associates’ by Ultratech and a number of buy-outs in Power sector. Globally, the scenario is even more pronounced with deals in the range of $ 20-30 bn being a common occurrence. So what drives … Continue reading Consolidation in Industries – What drives it..??
After years of decline, Corporate investment appears to be readying for a take-off as per a report released by RBI. Aggregate loan sanctioned by banks and financial institutions (FIs) during FY16 rose nearly 10% to Rs 95,000 crore. The figure had been steadily declining since FY10 when it stood at a staggering Rs 5.6 lakh crore. Even though … Continue reading Corporate Investment – Is there a turnaround.??